Vodafone flags industry's 'unsustainable financial duress'
Ailing telecom operator Vodafone Idea (VIL) has flagged the industry’s ‘unsustainable financial duress’
image for illustrative purpose
New Delhi: Ailing telecom operator Vodafone Idea (VIL) has flagged the industry's 'unsustainable financial duress' in its latest annual report and hoped that the government would provide the necessary support to address 'all structural issues' faced by the sector.
In the Chairman's letter to shareholders, Himanshu Kapania cited persistent challenges in the operating environment, amid 'unsustainable pricing' and 'hyper-competition' during FY21. Kapania expressed hope that government will support efforts to generate reasonable returns on massive investments.
Through the course of FY21, the operating environment continued to remain challenging due to unsustainable pricing and hyper-competition, which were further aggravated by the Covid-19 pandemic, Kapania noted.
While the operating challenges remain, increasing digital penetration that has got a further boost during the pandemic remains a massive opportunity for the telecom industry especially when the pricing revives in future, said the company. VILbelieves that the government recognises the criticality of the sector and the importance of retaining healthy competition amongst private sector operators".
